1994 Redux: Prudent, Not Sexy, Stocks Will Make You Money

If you had to try to make money in 1994 there were only two places to do it: technology that could continue to grow consistently and the food, beverage, cosmetic and drug stocks.

The former, right now, seem very crowded, but we are still trying. We are in Cisco (CSCO Quote), EMC(EMC Quote), Intel(INTC Quote), Yahoo!(YHOO Quote), America Online (AOL Quote) and JDS Uniphase(JDSU Quote) -- all of which fit that bill.

But unlike 1994, where the future was not priced into the stocks as much, this time around, people really own these suckers. They are what I would describe as crowded longs. I can't tell you to be in something that I am worried about, even if I like them, and that's how I am feeling about those names.

The drugs and the foods, however, still seem underowned and underloved. We made decent money as a firm in 1994 and we did it with stocks like Bristol-Myers (BMY Quote) and General Mills (GIS Quote) and Pepsi(PEP Quote). ...